A few things from an iPod freak:
First off, please consider upgrading to MC9. There are many features that just aren't available in MJ8 that you will definitely want, synchronization being one of them. This isn't a ploy to get new customers, it's just that the MJ8 engine lacks the functions that synchronization needs. When MC9 is final and they make MJ8 into MJ9, this will probably not be an issue; but for the time being, MC9 is your best iPod bet.
Second, this plugin is, at the moment, not compatible at all with an XPlay-initialized iPod. That is to say, if you've ever run the "XPlay Setup Wizard" on your iPod, MC will not recognize it as an iPod. More on that wizard later.
If you would like to keep your iPod mac-formatted, you can download and install MacOpener or a similar HFS+ driver for Windows. I did it once as a test, and the MC9 plugin worked great with it.
I totally suggest that you convert your MacPod into a Windows-formatted iPod, however.
Here's a link on how to do this. Please note: if you use XPlay to restore your iPod, it will restore it to a Mac-iPod, regardless of what it was before. The only thing that the XPlay 1.0.4 (or earlier) restore program can do is format HFS+. If you convert your iPod, perform any future restores with the new updater, not with XPlay.
If you want to have the best experience possible with MC9 and your iPod, I suggest uninstalling XPlay completely. I too, paid for XPlay and used my MacPod with it. I uninstalled it about a month ago, and haven't looked back since.
Okay, so let's say that you don't want to uninstall XPlay. You followed my link above, downloaded the 1.2.1 updater, and converted your iPod. Now, each time you plug it in, you get a window called "XPlay Setup Wizard" right? HIT CANCEL. Tell it you're sure you want to cancel. If you go through with this wizard, MC9 will fail to recognize your iPod as an iPod; it will think it's just another hard drive.
Steve, if you're reading this, let us know if you plan on making the plugin compatible with an XPlay-initialized iPod. I'd love to re-install XPlay' it's a good tool and I've paid for it already. But the two don't mix currently.